UIOLI LT VIP Ibérico

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​​​​​The NRAs of Portugal (ERSE) and Spain (CNMC) launch a public consultation on UIOLI LT (Long-Term Use-It-Or-Lose-It) mechanism. In the context of the South Gas Regional Initiative, the Transmission System Operators Enagas (Spain) and REN (Portugal) have developed a joint and coordinated proposal on UIOLI LT scheme to be applied at VIP Ibérico.

In 2019 REN committed to implement the Portuguese mechanism in coordination with Enagás, so to contribute to a harmonized UIOLI-LT mechanism in the SGRI area.

The UIOLI LT mechanism is one of the congestion management procedures, aiming to solve congestions by bringing unused capacity back to the market. It consists of withdrawing contracted capacity from long-term contracts considered systematically underused, to be offered in the capacity allocation procedures together with the rest of the available capacity in the interconnections.

The mechanism can be useful to optimise the system​, as it released capacity that would remain unused. The procedure also allows for sending accurate signals to the market about the capacity effectively available in the interconnections.